Tantia, ESSB list at premium

STOCK REPORT

Tantia Construction was listed on Friday on the Bombay Stock Exchange (BSE), at Rs 180. The stock closed the day at Rs 220, with a 340 per cent premium over issue price of Rs 50.

Also, Emkay Share and Stock Brokers (ESSB) was listed on BSE on Friday at Rs 148. It ended the day at Rs 136.75, up 14 per cent from the issue price of Rs 120. It hit a low of Rs 115 and a high of Rs 149.

Around one crore shares of Tantia Construction were traded. The current price of Rs 220, discounts its 6-month April-September 2005 annualised earnings per share (EPS) of Rs 3.5, by a PE multiple of 62.85. The Kolkata-based company has strong presence in eastern India.

From Rs 650 crore on 31 March 2005, its order-book swelled to Rs 810 crore. At present, the order-book is 7.8 times its FY 2005 net sales of Rs 103.16 crore. Most of these orders are scheduled for completion in 2-3 years.

The company's project portfolio includes railways, roads, ports, bridges, power and urban infrastructure.

Around 52 lakh shares of ESSB were traded on the BSE. The company's revenue predominantly comprises brokerage income from equities and derivatives on BSE and NSE.

It focuses on institutional broking, which generates almost 55 per cent of its income. The company also undertakes distribution of third-party products, portfolio management service (PMS) and demat services.

The company now plans to become a full service brokerage outfit providing comprehensive advisory services to its clients. It is also expanding its operations and branch network both in the country and overseas, from 41 at present to 100, in two years.